Africa Newsletter 12-23-20

East Africa Update

Kenya Cereals Board To Start Purchasing Maize This Week

The National Cereals and Produce Board (NCPB) will start buying maize at a set price of KES 2,500 per 90 kg bag this week as the government plans to release the estimated KES 18 billion owed to the body.

The government body had stopped buying maize directly from farmers last year leaving the private sector to enter the market as farmers were advised to sell their grain through the newly formed warehouse receipt system as reported by the Business Daily.

The move is seen as a positive one by the farmers as it sets a favourable price for their grain compared to some of the offers made at the farm gate by traders and brokers.

Kenya Market Update

Maize prices in the Nairobi area are still trading at KES 2,500 per kg and now with the NCPB entrance into the market, the price is likely to remain steady over the coming weeks even with the Uganda new crop set to enter the market from January. The demand for soybeans will continue beyond the festive season and is still trading above KES 46 per kg in Nairobi.

Uganda Market Update

Maize in Kampala is trading at UGX 750 per kg as more of the new crop starts to enter the market and with anticipation that demand will increase in January with most government institutions set to reopen. Soybeans are also expected to trade at a lower level in January but are still trading at UGX 1,650 per kg in the Greater Kampala area. Maize bran has increased to UGX 500 per kg from major millers in the capital.

Business Community Wants EAC States To Seek Trade Deal With the UK As One Bloc

After the UK and Kenya signed a trade agreement last week, the East Africa Business Council, the region’s private sector umbrella, has called on the rest of the state nations to start negotiations with the British government for a new Brexit deal with the EAC.

According to The East African, the rest of the EAC members can still access the UK market as Least Developed Countries (LDCs) before a trade agreement whereas Kenya which signed an Economic Partnership Agreement (EPA) with the UK worth $1.9 billion, is categorised by the UN as a developing country.

The aim of the East African Business Council is that the rest of the countries upgrade their status of LDCs so that they can be marketed as a single investment destination and be better positioned for the larger global economy.

Kenya To Buy Surplus Sugar From Uganda – Museveni

Uganda’s President Museveni has announced a breakthrough in talks with his Kenyan counterpart Uhuru Kenyatta in regards to the importation of Uganda’s surplus sugar stocks.

Kenya will now import some of Uganda’s 220,000 metric tons of surplus sugar while Tanzania also remains in talks to off-take large stocks too according to The Monitor.

Mr. Museveni confirmed that Uganda produces 600,000 metric tons per year and consuming 380,000 metric tons leaving a surplus of 220,000 metric tons. This positions Uganda as the only member of the East African Community with a sugar surplus.

Find our report Hot Commodities at panxchange.com/hot-commodities